After the massive demonetisation drive that killed old Rs 500 and Rs 1000 notes, the Narendra Modi government may move to impose restrictions on your cash holdings and transactions. According to a CNBC-TV 18 report, the government could consider prescribing cash holding limits for individuals. The report quoted a government official as saying that the government is in the process of deciding if cash transactions above RS 3 lakh or Rs 5 lakh should be restricted. Additionally, the government may also consider capping high value cash withdrawals from banks.
Yesterday, the government increased the cash withdrawal limit at ATMs to Rs 2,500 per day. Banks have been advised to increase the Cash Withdrawal limit at ATMs from the existing Rs 2000 to Rs 2500 per day in the recalibrated ATMs, other ATMs will continue to dispense Rs 50 and Rs 100 notes until they are recalibrated, the Finance Ministry said. To expedite the process of recalibration of ATMs, a Task Force is being set up under Deputy Governor, RBI consisting of representatives of Banks and Finance Ministry. This Task Force will draw up action plan and ensure implementation of this action plan for quick recalibration of the ATMs to enable them to dispense new Bank notes of Rs 500 and Rs 2000.
The limit for exchange of old Rs 500 and Rs 1000 notes was also enhanced to Rs 4,500 from Rs 4,000 earlier. The limit that had been imposed for daily withdrawal from banks was removed. Now, an individual can withdraw as much as Rs 24,000 from his/her bank account in one week. The government will soon come out with a new Rs 1000 note that will have enhanced security features. The massive demonetisation drive that has been announced is aimed at making existing black money in the domestic economy mussels, and also counter the threat from fake currency.
In the first four days (from November 10th to 13th, upto 5 pm) about Rs 3.0 lakh crore of old Rs 500 and Rs 1000 bank notes have been deposited in the banking system and about Rs 50,000 crore has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATMs or by exchange at the counter. Within these four days, the banking system has handled about 18 crore transactions, the Finance Ministry said.